Credit Constraints and Agricultural Productivity : Evidence from Rural Rwanda

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Taylor and Francis

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While potentially negative impacts of credit constraints on economic development have long been discussed conceptually, empirical evidence for Africa remains limited. We use a direct elicitation approach on a national sample of Rwandan rural households to empirically assess the extent and nature of credit rationing in the semi-formal sector and its impact, using an endogenous switching model. Elimination of all constraints could increase output by some 17 per cent. Implications for policy and research are spelled out.

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credit rationing, credit constraints, input intensity, agricultural productivity

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http://hdl.handle.net/123456789/405742

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https://hdl.handle.net/10986/18084

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